The World: International business magazines bite the dust

BusinessWeek's tongue-in-cheek media predictions for 2006 include a
hostile take-over of David Bowie by U2 and a Google brain search
programme.

The sober issue of any further international editions of big US print
brands biting the dust receives no speculation.

Yet the casualties of 2005 suggest that further closures are
possible.

Last year, both Forbes and BusinessWeek shut down their international
editions.

As part of a new strategy, Forbes Inc introduced an Asian edition in
September, and both Forbes and BusinessWeek have been pushing their
websites.As well as more dedicated online content, subscribers to the
international editions have been offered the US version.

Some experts claim these closures make sense because producing a
magazine is such an expensive affair. But others have damned the moves
as short-termist.

The Spartan atmosphere around US-based international business titles is
undeniable. Forbes and BusinessWeek weren't the only ones to feel the
pinch last year. In November, Newsweek scaled back the circulation of
its international edition by 30 per cent - 95,000 copies - and cut ad
rates by a quarter. And in October, Dow Jones' The Wall Street Journal
Europe and its sister Asian title resized as compact papers.

The international editions of Forbes and BusinessWeek closed not because
they were underperforming; rather, the harsh economic realities in the
US necessitated some ruthless business decisions. US publishers are
anxious to protect their domestic titles and have had to make the
balance sheet a little more, well, balanced. As a result, many believe
international editions became sacrificial lambs.

Paul Maraviglia, the former international sales director for
BusinessWeek and now the managing director at McGraw-Hill Education in
Europe, comments: "BusinessWeek finished in Europe $1.5 million
above last year - I've never seen the business in Europe and Asia so
strong. But frankly, the past year in the US has been brutal."

Others agree. Andy Bush, Fortune's publishing director for Europe, says:
"Anyone who said it was easy in the US right now would be lying.
Although there are some bright spots - such as the energy sector
spending more - automotive and technology are still struggling. We're in
for a tough year."

The figures back this up. In 2005, the US editions of Time and Fortune
saw their ad pages decline by more than 10 per cent. What's more, Time
Inc laid off 105 staff in New York in mid-December 2005, including a
clutch of senior veterans such as Richard Atkinson, the executive
vice-president of the news and information group, and Eileen Naughton,
the president of Time magazine.

Cost-cutting was clearly one reason behind the job losses. But Time Inc
also reorganised its management to help streamline its products. The
US's largest magazine publisher is re-establishing itself as a
multiplatform content provider.

With this in mind, could the Forbes and BusinessWeek print closures
herald the dawning of a new era in which paper becomes an anachronism?
After all, what self-respecting, high-earning international business
traveller doesn't attend networking opportunities, own a PDA or use the
internet? Certainly, Forbes Inc, which is investing more in its events,
also has a clear vision for its digital future, claiming that forbes.com
already gets 2.9 million unique European visitors a month.

Yet certain media experts are sceptical as to whether websites spun off
from established business magazine brands make solid stand-alone
products; a print product, many believe, must be at the heart of the
empire. Adrian Smith, MediaCom's account director for Shell, says:
"Certain studies suggest that print is still very important to
opinion-leaders because they don't necessarily have the time or
inclination to look online."

He adds: "When the internet first started, there was a lot of discussion
about it replacing print. Unfortunately, it now looks like it is
happening because the costs attached to producing a magazine are too
high."

As the business models of old start to change, print brands are starting
to explore partnership models. Not only do many titles - including
Forbes and BusinessWeek - produce local-language editions with partner
publishers; they are also linking up with other media brands. Fortune
can be bundled with other Time Warner media properties, such as CNN and
Time, while MSNBC.com carries content from Newsweek. Yet, following Time
Warner's merger with AOL, print publishers often get jittery about
becoming too cosy with virtual brands.

Regardless of how the digital futures for international media brands
evolve, the more immediate concern is over how these closures affect the
bigger picture. Peter Colvin, the senior account director, global
solutions, at Mediaedge:cia in London, sums it up: "Advertisers and
agencies will need more convincing than ever about the benefits of using
pan-regional print to reach business audiences.

"Psychologically, these closures have put a huge dent into print's
stature and confidence."